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Democrats' plans for tech industry in political jeopardy

The next two years could spell changes in Washington for the tech and telecom industries. |
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GOP lawmakers are typically more aligned with companies who oppose Net neutrality, including telephone and cable providers AT&T, Verizon and Comcast, and broadcasters.

That means the Internet companies such as Google, Skype and Amazon, who have been allies of Democrats, will have new relationships to build. Still, Net neutrality advocates say the election won’t cause them to back down.

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“Our agenda remains the same regardless of who’s in power,” said Joel Kelsey of Free Press. “This election was not a referendum on Net neutrality. I think this election actually said very little about the policy decisions in front of us.”

How active Congress will be on other issues like online privacy and reforming telephone subsidy programs will largely depend on who holds the gavel. But each of the candidates has signaled an interest in the issues, meaning some action next year is possible.

The wireless industry is likely to win more spectrum regardless of which Republican assumes the full committee’s gavel. Jot Carpenter, vice president of government affairs for CTIA, the wireless trade association, said the potential candidates have generally been friends of the industry.

The general consensus is that GOP oversight will keep the Federal Communications Commission on a much shorter leash. During his year-and-a-half tenure as FCC Chairman, Julius Genachowski has at times relied on political cover from Democrats on Capitol Hill to push forward his agenda — namely his goal of codifying Net neutrality regulations or adopting a new framework for broadband to give the agency more authority over the industry.

In a recent interview with POLITICO, Genachowski briefly acknowledged the changing political landscape but said there is support on both sides of the aisle for what he sees as the most important near-term goals: repurposing idle airwaves for wireless services and leveraging communications tools for education and energy efficiency.

But the chairman still needs congressional support for many of the recommendations put forth in the FCC’s landmark National Broadband Plan. For example, the FCC needs congressional approval to move forward with incentive auctions, which will provide auction proceeds to broadcasters who volunteer to give up unused airwaves.

“I don’t see these as partisan issues. I see them as core issues that are critical to the country,” Genachowski said. “We’ll continue to focus on the opportunities for the country around broadband and doing everything we can so that broadband and technology keep leading the country out of the economic crisis we’re in.”

Less change is expected on the Senate Commerce Committee, where Sen. John Rockefeller (D-W.Va.) will likely remain as chairman. He is expected to push incentive auctions as well as reforms to the telephone subsidy program to expand broadband in rural areas — both of which have bipartisan support.
Cybersecurity may be another initiative with bipartisan appeal. But Republicans could approach the issue far differently than Democrats, perhaps choosing to not use the defense bill as a vehicle to push reform as some Democrats would have liked.

Taxes, trade and immigration could return to the front burner, too. Top House GOP leaders — including presumptive Speaker John Boehner — indicated as much in an April 2009 letter to Democrats.

The tech community in particular has been aggressive in calling for the reinstatement of a research-and-development tax credit, the completion of outstanding free trade agreements and reform of the guest worker program, though the congressional calendar, in part, kept Democrats from delivering.

President Barack Obama this week maintained his support for some of the measures, including extending R&D tax credits. He also pledged more cooperation with the business community.

“I don’t think we should be cutting back on research and development, because if we can develop new technologies in areas like clean energy, that could make all the difference in terms of job creation here at home,” he said in his postelection news conference.

Readers' Comments (5)

This is all very bad for the Democrats. One of the linch-pins of their fund raising is their ability to throw taxpayer money at those groups that support them with donations. Now the Republicns have their hand on the money spigot and it's no secret that a lot of the groups who have made out very well with the trillions of unaccounted-for dollars that have been thrown around in the past two years are going to be facing lean times.

Fat-cat Wall Street bankers will have to find their handouts elsewhere. The federal government will be far less interested in thowing money down the green-technology rat-hole. And the U.N. may have to take their begging bowl elsewhere.

There's a huge difference in the way the two parties try to support their favored groups. Democrats throw taxpayer money at them - and the taxpayer money they're thowing comes our of our pockets. The Republicans give them tax cuts, which doesn't cost us a cent.

Im glad it is in Jepordy. Do you realize what the Governement wanted to do under this bill. They want the freedom to tap into your phone conversations, and listen in. They also want to control the internet airwaves so they can tap into your computers without you knowing.

This will be the Governements new "Eve's Dropping Act"

Everything you do from talking to your sister, to online banking the Government will have control of everything you say and do. They can log into your system under a "Virtual Control Administrator" Hackers calls these people "Shadows" meaning you can log into your computer by remote access from another city, state, and in some cases Countries.

You will NEVER have privacy again.. Big Brother will know everything about you.

I dont know about you, but that gives me the creeps to think these people will have control over my life, and bank accounts, thats some scary stuff!

They will try and pass this law because they believe the American People are terrorist. If they would secure the borders and get rid of the illegal immigrants, we wouldnt have this threat.

Why should the American People suffer for the Governements Neglegence?

Why... because they are using this as an excuse to control everyone.... they will not get rid of illegal immigrants, because there isnt a profit in getting rid of them. If they keep them around, they can use fear to control every American by passing laws that will strip our liberty, and freedom away.

More wasted opportunities by the democrats and the FCC. Soon you will not be able to go where you want on the web...just where your ISP wants you to go. Net Neutrality is in the best interest of every person who uses the internet. Its not in the interest of Big ISPs that want to squeeze every dime they can out of us. If there was actual competition in broadband there would be no need for net neutrality legislation, but thanks to Kevin Martin who all but did away with line sharing there is none

end net neutrality means that all you folks with cheap fast access can kiss it good bye. pay more for what you have now - hey, thats what capitalism is all about, whatever the market will bear... because republicans have decided that the information on the internet is just a product that people will have to 'buy' ... not anything for the public interest or spread of information or a boon to education....

You can be certain Google and Zuckerberg will have free reign and plenty of cover to steal your info right off your computer and make billions selling it- even to hackers and other bad actors who want to steal your identity. They don't care WHO buys your info as long as someone does. They'll be immune to lawsuits when your identity gets stolen and your bank account gets emptied. They'll be able to go in anytime, anywhere and get your contact info, the stuff you have and buy- everything. Where you keep your guns and who you bought them from. So when the UN comes in with a huge international brigade led by China- they'll already know where your 2nd Amendment protected weapons are and who is in the militia. Yes, the GOP is the biggest front for the International Sellout and Invasion of America- even while they've been talking tough- our forces are disperesed around the globe- tired and weakened and poorly supplied, so the UN can move and take the homeland while our brave soldiers are away! When they start talking tough about Iran, N. Korea and China- they'll want to send MORE troops overseas- we'll be totally, completely, utterly defenseless and the U.S. will fall. ALL because of the Republicans.